Does the Multi-Unit Development Agreement define all capitalized terms used within it for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
On the same day as they execute this MUDA, BBF and Franchisee have entered into a Franchise Agreement for the franchise of a Better Blend Nutrition business (the "Franchise Agreement"; capitalized terms used but not defined in this MUDA have the meanings given in the Franchise Agreement). BBF and Franchisee desire that Franchisee develop multiple Better Blend Nutrition businesses.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Multi-Unit Development Agreement (MUDA) does not define all capitalized terms within it. The FDD states that capitalized terms used but not defined in the MUDA have the meanings given in the Franchise Agreement. This means that franchisees need to refer to the Franchise Agreement in conjunction with the MUDA to fully understand the meaning of capitalized terms.
For a prospective Better Blend multi-unit franchisee, this highlights the importance of carefully reviewing both the Franchise Agreement and the MUDA. Franchisees must understand how the two agreements interrelate and where to find the definitions of key terms. This also means that changes to defined terms in the Franchise Agreement could potentially impact the interpretation of the MUDA.
This is a fairly common practice in franchising, where multiple agreements often reference each other. Franchisees should pay close attention to cross-references and ensure they have a solid grasp of all relevant documents. It would be prudent for a prospective franchisee to seek legal counsel to review both agreements and clarify any ambiguities or uncertainties before signing.